U.S. existing home sales likely to have declined in October

U.S existing homes sales are likely to have dropped in October. In the prior month, existing home sales had increased 3.2 percent, owing to a 4.1 percent surge in one-family homes sales, whereas condos/co-ops purchase dropped by 3.2 percent. Sales in October are likely to have registered a modes fall to 5.40 million units, noted Societe Generale in a research report.

Pending home sales data, that sows signings, mainly lead closings on existing homes by about one month. In that respect, the 1.5 percent rise in pending home sales index in September augurs well for a rebound in re-sales in October. But the lag appears to have stretched out to around two months in recent months.

This might reflect the fact that the post-Brexit period witnessed a sharp increase in refinancing applications that might have overwhelmed lenders and result in a delay in closings, stated Societe Generale. The MBA mortgage refinancing index rose sharply by around 34 percent from the end of June to mid-July.